As has been expected for some months, this evening the Federal Deposit Insurance Corporation - FDIC - closed Horizon Bank of Bellingham. The closing is costing the FDIC 539.1 million dollars - an extremely large cost as compared to most bank closings. You can read more in the Seattle Times article by Drew DeSilver and you can check the FDIC official statement at their website. The assets have been transferred to Washington Federal Savings and Loan Association of Seattle.
Horizon is half owner of the Chuckanut Ridge land and has been proposing a controversial development with their co-owner, David Edelstein. NwCitizen writers have posted a number of articles on this. From talking with others who are more familiar with the situation, it seems the receiving bank, Washington Federal, will have little interest in developing the land. This may force a bankruptcy for the development firm or require Edelstein to pay for full ownership. There are also questions of whether the land might revert back to the original owner - that there might be a reversion clause somewhere. We will continue to watch this proposed development.
Comments by Readers
Tip Johnson
Jan 09, 2010OK, Mr. Horowitz. Your turn.
Larry Horowitz
Jan 09, 2010Tip, thanks for the invitation to comment; however, I really have nothing to add. Perhaps I will once Washington Federal makes its decision with regard to Chuckanut Ridge.